Investor sells £6.6m mixed use scheme
INVESTORS have sold more than 40,000 sq ft of mixed retail and office property in the form of Airedale House.
The Kirkstall Road site has been sold to GM LEgato for £6.63m, reflecting a net initial yield of 8%.
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The 41,432 sq. ft. property was bought by Bridges in December 2013, from its first sustainable property fund, before completing a major refurbishment and reducing its carbon footprint.
The property is multi-let to a variety of tenants, including Sally Salon Services, Slaters Menswear, Optical Express and The Prince’s Trust.
The buyer, GM Legato Property Ltd, is an investment company set up by Yorkshire-based private investor Graham Goodwin.
CBRE advised Bridges on the sale, while Knight Frank acted for GM Legato Property. Lloyds Banking Group provided debt to support the investment.
Guy Bowden, partner at Bridges Ventures, said: “Bridges’ investment in Airedale House is a perfect illustration of how positive societal impact and commercial value growth can go hand-in-hand.
“By incorporating sustainable features in our refurbishment, we were able to not only reduce carbon emissions but also cut energy costs – which made the building more attractive to prospective tenants, and in turn investors. It has also confirmed our belief that West Yorkshire is an extremely attractive investment destination, and we remain actively on the look-out for further opportunities in the region.”
Alex Whiting, senior director at CBRE, said: “The refurbishment of Airedale House created a very compelling rental proposition for both retail and commercial tenants. So it’s no surprise that the building is almost back towards full occupancy, nor that it proved to be so attractive to potential buyers.”
Other Bridges investments in this sector have included 158-170 Edmund Street, two adjacent office properties in Birmingham; The Office, a specialist provider of flexible office space; and 6 East Parade, a 45,000 sq. ft. office building in Leeds’ main commercial district.
